Law and accountancy are among the businesses most vulnerable to AI disruption, top private capital executives have warned, adding to the worries of buyout groups that have invested heavily in professional services.
The rapid development of generative AI has already hit the valuations of software businesses but private equity and credit investors told the FT that asset-light advisory businesses that bill by the hour were also at serious risk.
“Software has dominated the headlines but AI goes so much further,” said Kevin Marchetti, chief investment officer and head of US direct lending at Man Group. “Claims auditing, billing automation, proxy voting management or legal services . . . you could really foresee how AI could impact them.”